Rs 42,300 cr loans given since launch of account aggregator framework

4.22 million loans disbursed on the platform; nearly half of it facilitated in H2FY24

The Account Aggregator (AA) framework has facilitated loans amounting to Rs 42,300 crore till March 2024 since its launch three years back, said Sahamati, the industry alliance for the ecosystem.

During the same period, about 4.22 million loans were disbursed on the platform. The cumulative average ticket size of loans facilitated on the framework has been pegged at Rs 100,237.

In comparison, in the second half of the financial year (H2FY24), 2.12 million loans amounting to Rs 22,100 crore were facilitated on the framework. This is nearly half of the lifetime disbursement value and volume on the AA framework. 

Lending firms use AA framework for a customer’s loan journey such as onboarding, underwriting, and monitoring of customers.
 

Sahamati claims transaction costs for lenders can come down by 20 to 25 per cent on the AA framework.

“The numbers represent the data submitted by nine top-performing FIUs, representing about 60 per cent of consents fulfilled for H2FY24. The numbers, if extrapolated for the ecosystem, are much higher,” Sahamati said in a statement. 

At present, the Account Aggregator ecosystem has 163 Financial Information Providers (FIPs) across banks, insurance firms, investment, pension and taxes and 475 Financial Information Users (FIUs).

There are 2.12 billion financial accounts, including 1.64 billion bank accounts, in the AA ecosystem.

In India, AAs act as consent managers that operate independent of FIUs which allows users and businesses to consensually share their financial data and manage consents at one place.

AAs use technology to ensure there is a secure exchange of data between financial institutions like banks, insurance agencies or mutual fund companies.
 

The data can only be shared after securing a customer’s consent, following which it can be used to access financial services.

AA collects a user’s digital financial data from one or multiple accounts, and shares it with a financial institution that may provide services such as loan or insurance.

“We have seen a steady 15 per cent monthly growth on the number of cumulative consent requests being fulfilled on the AA framework. Each consent request represents the fact that more and more individuals are now in control of their data and are using it for accessing financial services,” said BG Mahesh, chief executive officer, Sahamati.
 

In August, the AA ecosystem surpassed 100 million consents on the AA framework with about 80-90 million Indians using the system in the country.